Language URL Suggestion

Multilingual SEO

[sivac]

This is my current situation,

I'm currently in the process of choosing the URL structure for my language websites. But it might seem kind of confusing while choosing the URL structure. Please have a look out the example given below,

Ex:
example.com/game/cooking.html (English characters used in URL)

or

example.com/****/****.html(Thai characters like special symbols used in URL)

Please suggest me which one is best for language website. Also let me know the Future Issues, Risks, Problems involved while using the language characters (second one) in URL structure.

Thanks!

[edited by: tedster at 4:43 am (utc) on Jan. 5, 2010]
[edit reason] switched to example.com [/edit]

[phranque]

i would suggest staying with a latin alphabet and using location/language based cctld, subdomains or directories:
example.com vs example.th
en.example.com vs th.example.com
example.com/en vs example.com/th